JUSTIFICATION OF LOOK EAST POLICY AND BANGLADESH

More than 85 Percent of Bangladesh?s export goes to the west which may seriously affect the economy of Bangladesh. The objectives are to identify the development of trade relationship with east and south Asian countries and to justify the necessity of this policy and to provide the policy strategy for relationship development with these countries. It is taken the data of export and import of Bangladesh for 9 years for the year of 1999-2000 to 2007-08 with the ?east and south east Asian? countries and western countries (NAFTA and EU) for analysis. The study has used financial ratio, percentage, mean, growth, covariance, hypothesis test etc. for analysis of data and drawing inferences. The average export of Bangladesh to ?east and south east countries? and to western(EU & NAFTA) countries are 5.84% and 86.30% percent respectively with steady growth over the period.. The import of Bangladesh from ?east and south east countries? and western (EU&NAFTA) countries are 46.75% and 13.68% respectively. The growth rate of with ?east and south east countries? is steady and with western (EU&NAFTA) countries is steady with slight decline trend. The trade deficit with ?east and south East Asian? countries and the trade surplus with western countries (EU and NAFTA) are increasing over the periods. The recommendations are to be member of ASEAN, to develop the bilateral relationship, to develop the infrastructures, to identify the new market for export, to increase the export of skilled manpower to east and south east Asian countries.